Relocation rule.

Modern urban dynamics are increasingly shaped by the interplay between economic policy and urban planning, yet often lack an integrated approach. This study bridges this gap by examining the dynamic equilibrium between these two realms using the “Oscillation and Wave Framework.” Specifically, we focus on the impact of variations in congestion parameter λ on urban sectoral spatial distribution and population dynamics. Our approach utilizes an advanced agent-based model to simulate interactions within an urban economic landscape, offering a detailed analysis of the relationship between agglomeration economies and congestion diseconomies. The results highlight the significant influence of congestion parameter adjustments on urban patterns, particularly in terms of cluster density and development. Therefore, this study not only provides a deeper understanding of the intricate balance between economic and urban planning factors but also emphasizes the necessity of incorporating these insights into urban planning and policy formulation for sustainable urban development. The findings also have important practical implications for addressing the dynamic complexities of urban environments, especially the interactions between different industries and their role in shaping urban structures.